Identifying Accruals and Deferrals Events
Chapter 2 defined and discussed accrual transactions and Chapter 3 defined and discussed deferral transactions. In this assignment you will apply this knowledge and identify the following events as an accrual, deferral, or neither.
Identify each of the following events as an accrual, deferral, or neither.
1. incurred other operating expenses on account.
2. Recorded expenses for salaries owed to employees at the end of the accounting period.
3. Paid a cash dividend to the stockholders.
4. Paid cash to purchase supplies to be used over the next several months.
5. purchased a delivery van with a five-year life.
6. Provided services on account.
7. Recognized interest income on a certificate of deposit before receiving the cash.
8. Paid one year of rent in advance.
9. Paid cash for utilities expense.
10. Collected $2,400 in advance for services to be performed over the next 12 months.
This question was answered on: Jul 11, 2017
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